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### Viewing cable 10SANJOSE210, SIEPAC: December 2011 Is Earliest Completion Date for Costa

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
10SANJOSE210 | 2010-02-13 00:12 | 2011-03-21 16:04 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy San Jose

`

    VZCZCXYZ0000
    RR RUEHWEB

    DE RUEHSJ #0210/01 0440006
    ZNR UUUUU ZZH
    R 130005Z FEB 10
    FM AMEMBASSY SAN JOSE
    TO RUEHC/SECSTATE WASHDC 0381
    INFO WHA CENTRAL AMERICAN COLLECTIVE

` `

    UNCLAS SAN JOSE 000210

    SENSITIVE
    SIPDIS
    DEPT FOR WHA/EPSC FDOWDY AND FACORNEILLE, EEB/ESC/IEC/EPC MMCMANUS AND JDUGGAN, WHA/CEN JVANTRUMP

    E.O. 12958: N/A
    TAGS: ECON ENRG ECIN PREL PGOV CS SENV
    SUBJECT: SIEPAC: December 2011 Is Earliest Completion Date for Costa
    Rican Portion

    REF: 2009 SAN JOSE 747

    ¶1.  SUMMARY (U) Network Business Owner (EPR), the transmission line
    owner of the Electricity Interconnection System for Central America
    (SIEPAC), estimates completion of the last segment of the Costa
    Rican portion in December 2011.  The schedule is contingent upon
    resolving acquisition problems in a Central Pacific segment of the
    SIEPAC right-of-way.  An advocacy group consisting of AmCit and
    Canadian investors and local townsfolk are resisting acquisition
    attempts due to anticipated hydrological and rain forest damages
    that transmission line construction would cause.  The group filed
    suit and the case is now in the turgid Costa Rican court system.
    We anticipate that the completion deadline will slip into early
    ¶2012.  End summary.

    -----------------------------------------

    STAGGERED SCHEDULE FOR SEGMENT COMPLETION

    -----------------------------------------

    ¶2.  (SBU) CEO Pedro Pablo Quiros of Costa Rica's government-owned
    electricity company (ICE) shared with us on January 13 the
    timetable for Costa Rica's completion of its segment. The Costa
    Rican 493 km portion of SIEPAC consists of five segments, all with
    differing completion dates:

    Segments (North to South)

    Completion Date

    Nicaragua border - Ca????as

    May 2010

    Ca????as - Parrita

    July 2010

    Parrita - Palmar Norte

    December 2011

    Palmar Norte - R????o Claro

    November 2010

    R????o Claro Costa Rica - Panam???? border

    February 2010

    ----------------------------

    DIFFICULT ACQUISITION HURDLE

    ----------------------------

    ¶3.  (SBU) The third segment, Parrita to Palmar Norte (the "Central
    Pacific" region of Costa Rica), will take the longest to construct
    due to the right-of-way acquisition process.  ICE has
    responsibility for acquiring the needed property and/ or easements.
    The problematic section of the third segment is a 27 km stretch in
    the vicinity of Portal????n and Matapalo.  ICE projects completing
    the
    right-of-way acquisition by May 2010; however, anticipated delays
    caused by a court injunction due to appeals of precautionary
    rulings regarding a route change could push the completion date for
    right-of-way acquisition to late 2010 (reftel).

    --------------------------------------

    AMCITS ARGUE FOR INVESTMENT PROTECTION

    --------------------------------------

    ¶4.  (U) A U.S. investor has led an active advocacy campaign to
    re-route the SIEPAC transmission line in the Portal????n - Matapalo
    area.  In order to block ICE from establishing an easement through
    his land, he compiled environmental reports and supporters for
    re-routing the SIEPAC line.  The advocacy campaign maintains that
    the current route will negatively impact water resources, intrude
    into a primary tropical rain forest, and disrupt a fragile
    ecosystem.  Supporters of his position include the Ministry of
    Environment, Energy, and Telecommunications and the National System
    of Conservation Areas (SINAC).

    ¶5.  (U) The most recent court action consisted of a ruling
    rejecting the re-routing of the SIEPAC line but attached
    development conditions on the construction of the transmission
    line.  The judge stipulated that ICE must  narrow the transmission
    line easement from 30 meters to 15 meters, camouflage the
    transmission towers, and construct the line by hand; no tractors or
    heavy equipment are permitted.  The length of the easement is 2.5
    kilometers.  The landowner appealed the decision.  On a parallel
    track, a Canadian investor affected by the SIEPAC route plans to
    meet with Inter American Development Bank loan officers and explain
    how ICE's actions violate the terms of the SIEPAC loan financing,
    which included avoiding tropical rain forest and sensitive
    watersheds.

    ¶6.  (U) The U.S. landowner makes the point that there are several
    other American landowners affected by the SIEPAC route, but they
    have not been as vocal since they lack the resources to process a
    legal case.  The landowner firmly believes that ICE is waging a war
    of attrition with him (and local area residents) and alleges
    improprieties conducted by ICE.

    ¶7.  (U) Given the highly contentious nature of the case and the
    turgid nature of the Costa Rican legal system, we would expect the
    final date of completion of the SIEPAC line through Costa Rica to
    slip into 2012.
    ANDREW

`